It’s no surprise that large companies, who bring huge amounts of money into an economy, will have some level of sway over rates and laws regarding business. While I don’t think it should be a thing that happens, it just so happens to be how it works. So, to begin, how does the law currently view Cryptocurrency?
Before we get to that we should talk about currency in general, the normal kind. As it stands, every single flat currency in the world is made, dispersed and controlled by one entity, which in most cases tends to be a central bank. As per the law, people are only allowed to keep the currency, buy or sell it. If you try to create that currency yourself, you’ll more than likely find yourself in prison!
So when Bitcoin was first introduced, it ended up making a pretty new and unique model. It was the world’s first currency that was digital and decentralized, not controlled by a bank. In fact the very idea of Bitcoin, or any cryptocurrency for that matter, suggests that anybody who has a powerful enough computer can join in and make their own coins. As it stands, cryptocurrency is quickly becoming normal and as such local governments, tax authorities and legal regulators are struggling to try and wrap their heads around the whole thing. Where does it fit in with the regulations that already exist? Well, it depends who and where you are in the world as well as what it is you’re doing with it, but in many locations, for now bitcoin is kind of in a void. Like I said, the powers that be don’t particularly know what to do with it, however we do know one thing for sure. The fact Bitcoin can be used semi anonymously is a cause for concern as it tends to be used a LOT on the dark web. This is one of the main reasons many governments are on alert.
But given how more and more businesses are starting to open up to the idea of accepting cryptocurrency as a form of payment, including the headline of this article, since Tesla purchased a whack tonne of Bitcoin before announcing they will be accepting cryptocurrency as payment moving forward, how long is it before governments get on board? A few examples, I watch a lot of twitch and now, for obvious reasons, streamers have links beneath their streams where you can donate fractions of crypto coins instead of money, or you can use your Bitcoins on the top sportsbooks or even pay for your shopping in some cases with it. Why is that? Because the potential for companies to MAKE MORE PROFIT out of their transactions with cryptocurrency is huge. Why charge $50 for a service when you can charge a fraction of <insert cryptocurrency here> that is CURRENTLY valued at $50, within a week that could be worth $70 or more? It’s a no brainer.
What is your opinion on this? I hear you ask. Well for me, I never particularly liked the way that everything was effectively held by the banks. I’ve lost track of how many times in my life the government has had to BAIL OUT THE BANKS and honestly, it starts to become a bit of a joke. Yes, they were necessary, but do they need to remain a necessity? For now, most likely, but in the future, anything is possible. There are SO MANY different cryptocurrencies out there right now and if in the future the value of each crypto was to become less volatile, maybe crypto could take the mantle and become the common currency for the ‘every man’, I mean, why not? Over christmas I had some spare cash and invested it into Ethereum, I’ve made a little profit but the main thing for me was seeing just how easy it was to get into it. If I can do it, I don’t see why it couldn’t become more common.
Anyway that just about wraps it up, what do you think? Do you think the law will settle in favour of cryptocurrency in the end or do you think they’ll put their foot down and say no, siding with the central banks? I don’t trust the bank as far as I could throw it and that isn’t very far I can assure you.